American Manufacturing Slows for 9th Consecutive Month

Core Insights - The American manufacturing sector has contracted for the ninth consecutive month in November, driven by declining order volumes, increased input costs, and pressures from government tariff policies [1][4]. Group 1: Manufacturing Sector Performance - The Institute for Supply Management's (ISM) purchasing managers index (PMI) reported a decrease to 48.2 percent in November, down 0.5 percent from October's 48.7 percent [1]. - New orders fell for the third month in a row to 47.4 percent, while the production index increased slightly by 3.2 percentage points to 51.4 percent [2]. - Employment in the manufacturing sector contracted to 44 percent, a decrease of 2 percentage points from October's 46 percent [2]. Group 2: Economic Indicators and Trends - The pricing index rose by 0.5 percent to 58.5 percent, indicating increasing costs [2]. - Order backlogs decreased by 3.9 percentage points month over month to 44 percent, reflecting reduced demand [2]. - The contraction in manufacturing activity is attributed to pullbacks in supplier deliveries, new orders, and employment, as noted by ISM's chair Susan Spence [3]. Group 3: Tariff Impact and Future Outlook - Spence highlighted that tariffs are a significant factor affecting the manufacturing sector, with many supply executives expressing concerns about near-term demand due to tariff costs and uncertainty [4]. - Despite some temporary improvements in production, these gains are not expected to be sustainable without consistent increases in new orders [4]. - The manufacturing sector is not experiencing the anticipated benefits from reshoring efforts, as indicated by the disparity between positive comments on new orders and concerns about demand [4].